FIRSTSERVICE RESIDENTIAL CONNECTIONS

FIRSTSERVICE RESIDENTIAL

CONNECTIONS

summer | 2016

higher tech, lower bills

Upgrading heating and lighting will keep costs down

renting and raving

Avoiding conflicts in a world of short-term rentals

fuming

Protecting the rights of both smokers and non-smokers

FirstService Residential B.C. provides full-service strata management solutions to a wide range of strata corporations including some of Metro Vancouver's most beautiful and recognizable communities. For more than 37 years the organization has worked hard to serve homeowners in British Columbia, and today it is recognized as the leading strata management company throughout the province. For more information, visit british-columbia/home.

TABLE OF CONTENTS

3Welcome Message From Scott Douglas.

4Home or Hotel? Short-term renting could be here to stay. What you need to know.

6Fuming Keeping smokers and non-smokers from each others' throats.

8Juiced! Getting your strata hooked on the new breed of electric cars.

10 covering your assets Home insurance can protect you from damage you cause.

12 busted! A step-by-step guide to enforcing

bylaws.

16 Lightening up LEDs are leading the way to a brighter future.

18 Smart investing Why investors should consider professional managers.

20 Hot savings Upgrading your heating can save money and earn big grants.

22-23 News/appointments

FirstService Residential more than doubles last year's donation total for Canuck Place

Welcome | President's Message

We hope you are enjoying the beginning of the summer season. Our team is pleased to share with you the latest edition of FirstService Residential CONNECTIONS, our educational strata newsletter exclusive to FirstService Residential clients.

Our newsletter was created to help teach homeowners across Metro Vancouver more about the intricacies of strata living. By providing you with articles by strata experts on current issues facing strata corporations, our goal is to help foster education across the property management industry.

The newsletter now reaches more than 33,000 homeowners throughout the Lower Mainland. We encourage you to share the publication with your fellow residents, and we welcome your valued feedback. Sincerely,

Scott Douglas President, FirstService Residential BC

watch our YouTube video on bylaw enforcement

firstService Residential hosted a seminar in Vancouver dealing with strata bylaws and enforcement. It was led by guest speakers Sean Ingraham, Managing Broker for FirstService Residential, and Jamie Bleay, a lawyer at Access Law Group.

To view the video click here, or to learn more about bylaw enforcement, visit .

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home or hotel?

Despite still being (officially) illegal, short-term rentals in the Lower Mainland may be here to stay. Here's how to deal with them.

By the professionals at FirstService Residential

Short-term rentals are not only gaining ground across the Lower Mainland and causing consternation in the ranks of strata corporations, they're blurring the distinction between hotels and traditional rental properties.

As of summer 2015, Airbnb had more than 4,600 active listings in Metro Vancouver ? nearly 20 percent growth from the beginning of the year. The trend is continuing, with some 75 percent of all Lower Mainland Airbnb listings being in Vancouver.

Many strata councils are taking a firm stance against short-term rentals through Airbnb, VRBO, Kijiji, Craigslist and others by issuing violation fines under their existing bylaws, while working to have stricter ones passed. They are not wrong in wanting to address the issue, but an even-handed approach will yield the best results.

What we know

For the unit owners renting out their homes, online rental services can be a good source of income while delivering a unique vacation experi-

ence for travelers. On the other hand, strata corporations are

concerned about security. When neighbours don't recognise each other, keys and fobs are harder to track, and renters are less likely to follow security protocols.

Section 10.21.6 of the City of Vancouver `s Zoning and Development Bylaws prohibits anyone from using a dwelling unit for less than one month unless it's a hotel or bed and breakfast. But since Vancouver and other Lower Mainland cities don't provide resources to actively enforce this bylaw, strata councils are trying to address the issue themselves.

Inadequate wording may neutralize traditional strata bylaws. Short-term rentals can be deemed a "licence" instead of the traditional "rental," and the bylaws therefore may not apply.

What to do

Strata councils need to engage the ownership they represent to better understand their commu-

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Legal Issues | Short-Term Rentals

nity's wants and needs. Open discussions at general meetings, along with surveys and information sessions held within the building, are great ways to gather feedback.

If those with opposing views can better understand the other's position, there typically will not be any surprises at the general meeting when it comes to voting on a new rental bylaw. Information sessions also allow any objections to be addressed or potential revisions to be accommodated in the proposed bylaw changes.

The strata council then needs to design new bylaws that reflect the community's needs. In most cases, this will be limiting rentals/licences to a specific time period such as 6 or 12 months.

Further regulations may be warranted such as well worded bylaws for "move-in" fees or restrictions on advertising terms for the rental/licence agreement.

The ownership will then need to approve the proposed bylaw changes at a general meeting and have them filed with the Land Title Office to be enforceable.

Finally, the strata council and the strata management company can begin working on ensuring owners know of the changes and are in compliance with the new bylaws.

A typical scenario

Below is a common scenario for strata councils addressing short-term rentals:

1. Have an open discussion at your next annual general meeting to gather input from the owners in attendance. Stay open-minded and record concerns and objections.

2. Create a summary page that identifies why the strata council feels there needs to be a change, what the impact would be, any proposed bylaw changes, how short-term rentals will be tracked, and when the changes to short-term rentals would take place.

3. Share the summary page with the ownership. One way to accomplish this is by including it with the distribution of meeting minutes. Consider including contact information so owners may provide additional feedback.

4. Hold a meeting in the lobby or amenity room with council members present to answer any questions about the proposed changes. This is the time to engage the ownership and ensure the council's plan is clearly articulated.

5. If a change in bylaws is needed, ask your strata manager for assistance. Your management company will also assist in ensuring a general meeting is called and a vote held for approval of the bylaws.

6. Educate the ownership by broadcasting the changes through email, notices and letters to the owners.

7. Site staff, such as building managers and concierge personnel, should be trained on the changes so that they can educate the ownership and be part of a successful implementation.

8. Identify those owners who are not complying with the changes. Send them correspondence that outlines the new changes that have been implemented.

9. Reinforce the changes in strata council meeting minutes and other correspondence.

10. Send bylaw violation warning letters to owners who are in contravention. If no response is received, contacting the owner's agent directly or calling the owner may be required.

11. Continue following up and be consistent with all owners.

12. Review short-term rentals on an annual basis and be prepared to make minor changes or updates, as needed, to best reflect your community's needs.

Additional items to consider

If the council does not understand the ownership's needs, it may be difficult to pass the required three-quarter vote. Specific bylaw wording will be needed to address short-term rentals that may not qualify as a defined "tenancy." Consult your strata management company to craft the appropriate bylaw wording.

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FUMING

Conflicts between smokers and non-smokers are on the rise. Here's how to prevent a full-blown inferno.

By Veronica Franco, Clark Wilson LLP

With the health dangers of second-hand smoke now so well documented, it's not surprising that conflicts between smokers and non-smokers in strata corporations are on the rise. Marijuana is also causing conflict, especially since it is likely to be smoked more openly with the growing acceptance of medicinal marijuana.

It's important for strata corporations to understand the laws around smoking and non-smokers' rights ? especially in cases where they are legally obliged to resolve conflicts. Proactive councils will take the necessary steps to avoid costly legal action.

So what does the law say about the rights of

6

Strata Life | Where There's Smoke

non-smokers? The BC Tobacco Control Act (TCA) likely the smoker will comply with a complete ban.

bans smoking in areas within three metres of a

As a result, a negotiated solution that minimizes

doorway, window or air intake of common areas. transfer of smoke (such as renovations to the stra-

The TCA also requires strata corporations and their ta lot and its ventilation system) may be required.

property managers to enforce the smoking ban.

But the Clean Air Coalition of BC says air filters,

Failure to do so is a contravention of the Act.

purifiers and ventilation systems do not eliminate

Because some BC municipalities have bylaws second-hand smoke. So the repairs may not be ef-

that are either similar to, or more stringent than, fective, and other solutions may need to be found.

the TCA, strata corporations need to check to see

Ultimately, if the problem continues, the strata

whether the municipal bans are specified by the corporation will have to enforce its bylaws by

TCA or are broader.

levying fines or denying access to a recreational

Note that the TCA deals only with tobacco

facility in accordance with the SPA. If these mea-

products, so cannot be used to prevent smoking of sures don't work, the strata corporation may have

such other substances as marijuana. Of course, it to apply for a court injunction to ban smoking ?

is still illegal to smoke marijuana under the feder- or to evict the tenant if he or she is a smoker. An

al Controlled Drugs and Substances Act. But the owner that fails to abide by a court injunction may

extent to which the law is enforced varies

be found in contempt of court proceedings

from municipality to municipality. As a

and forced to pay a fine or go to jail.

result, a strata corporation or condo resident cannot rely on government statutes to ban marijuana smoking

Without their own bylaws, stratas

Alternatively, the strata corporation could apply for a court order to force the owner to vacate the

in a strata corporation. The BC Strata Property Act

(SPA) does not directly address smoking, but condo owners may

may be limited in their ability to enforce governmentimposed smoking

strata lot. If the strata corporation fails

to enforce the bylaw, an owner has two remedies. He or she may

ban smoking by bylaw or rule. Because smoking bans under the TCA or

bans.

apply to court for an order to force the strata corporation to enforce its

a municipality's bylaws must be enforced,

bylaws. Alternatively, he or she may bring

a strata corporation should consider creating a

a claim under the Human Rights Code that

no-smoking bylaw that mirrors or goes beyond the the strata corporation has discriminated by failing

legislation. Without its own bylaw, a strata corpo- to provide a smoke-free environment, which the

ration may be limited in its ability to enforce gov- owner requires because of a disability.

ernment-imposed smoking bans.

While there are examples of human rights

Even without a specific bylaw, a strata corpo- complaints by non-smokers, very few cases have

ration may have other bylaws to limit smoking. For been brought forward by smokers. Where marijua-

example, the standard bylaws to the SPA provide na is involved, the alleged discrimination is often

that an owner, tenant, occupant or visitor must not on the basis that smoking is required for medicinal

use a strata lot or common property in a way that purposes to treat a disability.

is a nuisance. Nuisance is defined as an unreason-

The demands of non-smoking residents can

able interference with the use and enjoyment of easily conflict with smokers' desires to smoke in

land. If someone makes a complaint about smoke, the comfort of their own homes. Know the law and

the strata council must investigate to determine be proactive to avoid costly legal action.

whether the smoke actually constitutes a nui-

sance. The investigation may involve hiring an expert or going to the scene.

Veronica Franco is a partner at Clark Wilson LLP ?

If smoking is found to be a nuisance, it is un-

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Strata Life | The Electric Invasion

New Tesla Model 3 has been pre-ordered by almost half a million buyers. Delivery is promised by the end of 2017. The Model 3 is at the leading edge of a whole new generation of electric cars including models from BMW, Nissan, Chevrolet, Ford, and others.

getting juiced

Electric cars are fast approaching. Will your strata have the charging stations to cope?

By Deryk Norton, Board Member, Vancouver Island Strata Owners Association

In the September, 2009 issue of the Vancouver Island Strata Owners Association Bulletin, a man named Marcus Murphy wrote an article entitled Charging for Charging. It raised important questions about how older strata buildings should cope with the electricity demands of electric vehicles (EVs).

Of course, in 2009 electric vehicles were rare, and unattractive to consumers due to their high

initial cost and limited range. Their challenge to strata corporations was only on the horizon.

Much has changed in seven years, specifically:

? EV prices are now much closer to the prices of gasoline-powered vehicles (some in the $30,000-$35,000 range);

? The driving range of EVs is significantly higher. Although most EV models are still limited to

8

Strata Life | The Electric Invasion

distances of 60-140 km per charge, one manufacturer has a model with an impressive range of 420 kilometres.

? Publicly accessible charging stations being installed across BC and North America are making long-distance or inter-city EV driving achievable.

So today, many more strata owners and corporations are facing demands to accommodate the charging needs of EVs. The Pembina Institute estimates that one third of BC vehicles could be electric by 2030. Lack of EV charging capability, already becoming a barrier to resale of units in some strata buildings, will become more noticeable as more EVs are sold in BC, leading to loss of market value in strata buildings not equipped to accommodate them. The complexity and cost of installing an EV charging station in a strata building depend on the type of strata, its parking arrangements and the adequacy of its electrical system. But clearly most new plug-in locations will require some change to the building's electrical system and the installation of a dedicated circuit. In bare land and many townhouse strata developments, the strata lot owner is responsible for maintenance of the electrical system within the home and garage. In these cases, the strata owner may take action (subject to strata bylaws and building and electrical codes) to install an EV charging outlet inside the garage, and directly pay BC Hydro for the added cost of electricity consumption. However, in most strata situations (such as apartment buildings), electric wiring is part of the common property, and EV owners must work with the strata council and other owners. These situations will require:

? Identifying which parking stalls should have EV

charging outlets;

? Determining the cost of necessary changes to the electrical system, and

? Establishing and collecting of a new type of user fee.

Right now, it costs about $10,000 to install a so-called charging station that can charge two cars at the same time; you may already have seen some of these in public places. This type of station has the capability (if a network subscription fee is paid) to bill the user directly, and enables the strata corporation to recover the cost of installation and electrical consumption. Alternatively, two EV charging outlets (without the features of a charging `station') could be installed for as little as $2500. A separate meter for a group of EV charging outlets is permitted by BC Hydro and would help ensure that any user fee covers the cost of electricity used.

As one might expect, the installation cost per station or per outlet declines as the number of outlets or stations increases. Also, costs will vary from one strata building to another owing to variations in both wiring distance and the complexity of modifications/upgrades needed to install the new circuits.

Regardless of the type of charging station or charging outlet chosen, though, the strata corporation will require owner approval (by a three-quarter vote):

? To make a bylaw that establishes a user fee for a charging station;

(continued page 21)

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